North Queensland office portfolio listed for international sales campaign

Brisbane, 6 October 2015 – Verde Property has announced intentions to sell its landmark office investment portfolio in Townsville and Mackay underpinned by long term leases to the Queensland State Government.

CBRE has been exclusively appointed to market the Verde Property Portfolio for sale individually or in one line.

Steered by CBRE Senior Managing Director, Queensland, Bruce Baker and CBRE Director, Capital Markets, Flint Davidson, the campaign is expected to generate major interest from local, national and offshore buyer groups - underpinned by the quality of the cash flow, the ongoing demand for long leased product and the distinct lack of opportunities available for the remainder of 2015.

On the market are 445 Flinders Street, Townsville and 44 Nelson Street, Mackay – both underpinned by long term leases to the QLD State Government. 

The buildings were developed by Verde Property, a joint venture involving the Goldburg and Gosling families.

Both assets serve as regional headquarters for the Queensland Government, with the portfolio providing a blended Weighted Average Lease Expiry (WALE) of close to 12 years.

“At a time when the availability of institutional grade investment product is increasingly scarce, we’re expecting the campaign will generate considerable interest, particularly in light of the long WALE and the blue chip income stream,” Mr Baker said.

“Both buildings were designed in response to specific requirements by the Queensland Government to serve as their commercial headquarters in North Queensland’s key regional hubs.”

The Townsville and Mackay buildings provide excellent efficiency and sustainability, having Green Star Ratings of 5 and 5.5 stars respectively.

Verde Townsville (445 Flinders Street, Townsville CBD) is an award winning eleven-level building has a lettable area of 11,615sqm, comprising a ground level foyer and retail space, three levels of car parking for 195 vehicles and eight levels of office accommodation.

Key features include efficient 1,300sqm column free floor plates, high profile lobby and ground floor retail café and end of trip tenant facilities.

The asset was specifically built for the QLD State Government and accommodates several major departments servicing the region including the North QLD Disaster Recovery Centre. As a result, the asset was developed and has been maintained to the highest specifications being Level 4 cyclone and providing 100% standby power, water and sewerage facilities, and with the capacity to operate up to five days in the event of an emergency.

It is these features, coupled with the quality of fittings and finishes which have been recognised by several industry affiliations including the Queensland Master Builders Association, NECA (National Electrical and Communications Association) and the Green Building Council of Australia.

Moving south – Verde Mackay (44 Nelson Street, Mackay) offers 7,058sqm of A-grade quality accommodation over six levels and is 100% leased to the Queensland State Government until 2025. The building comprises ground floor entry and retail accommodation and five levels of upper office accommodation. There is also a detached podium car park structure, which provides three levels of car parking. 

In the case of both Townsville and Mackay, the government leases agreements provide for fixed annual rental increases of 4%. CBRE’s Mr Davidson said this would deliver the incoming owner guaranteed rental growth in addition to having the security of a long-term government lease covenant.

Mr Davidson also commented “The diverse range of departments operating in both of these assets include some of the most important Government sectors in the region such as Department of Natural Resources and Mines, Department of Transport and Main Roads and the North QLD Disaster Recovery Centre – providing further diversification of risk for an incoming investor”.

A major feature of this offering is that both buildings are located within Northern Australia - one of the most exciting economic development regions in the Asia Pacific region and in key regional centers for North Queensland. 

“Townsville and Mackay are already reaping the benefits of their gateway locations between major regional production areas and port/trade corridors linking North Australia to Asia Pacific and beyond,” Mr Davidson said.

“This has underpinned major economic development, productivity, employment and population growth in these areas and will support the ongoing requirement for the QLD State Government to have a strong presence in these markets”.